Sarah London, CEO of $CNC, single-handedly trying to comfort investors in the health insurance sector. The stock was down 17% but has bounced back and is now trading green. Here's what she emphasized:
She said the 2025 headwinds—ACA risk adjustment and redeterminations—are fixable and mostly front-loaded. They’re repricing 100% of the exchange book for 2026 and are confident it’ll return to profitability. She also pointed to operational levers in Medicaid like utilization management, fraud controls, and rate advocacy, already being implemented in high-pressure states like Florida and New York.
On capital, the CFO said they’ll only need to put a net $300M into subsidiaries in the back half, have $4B in undrawn credit, and debt-to-cap is at 39%, well under the 60% covenant. That gave investors some comfort on liquidity and no near-term need for capital raise.
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